§60-1601.11. Insurable interest of trustee.

283 words·~1 min read·/ok/title-60-property/60-1601-11·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. In this section, "settlor" means a person that executes a trust instrument. The term includes a person for which a fiduciary or agent is acting.

B. A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the owner if, on the date the policy is issued:

1. The insured is:

a. a settlor of the trust, or

b. an individual in whom a settlor of the trust has, or

would have had if living at the time the policy was

issued, an insurable interest; and

2. The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries that have:

a. an insurable interest in the life of the insured, or

b. a substantial interest engendered by love and

affection in the continuation of the life of the

insured and, if not already included under

subparagraph a of this paragraph, who are:

(1)related within the third degree or closer, as

measured by the civil law system of determining

degrees of relation, either by blood or law, to

the insured, or

(2)stepchildren of the insured.

The following table identifies the relatives of an insured within three degrees of lineal and collateral consanguinity using the civil law method, with each row representing a generation.

Great-

Grandparents

Parents Aunts and Uncles

(3)INSURED Sisters and

Brothers

(2)Children Nieces and

(1)Nephews

(3)Grandchildren

(2)Great- Grandchildren

ARTICLE 2

JUDICIAL PROCEEDINGS Added by Laws 2025, c. 254, § 11, eff. Nov. 1, 2025.